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The time now is 10/16/08 - 20:12

To what point can a company borrow money?


RealCool.BIZ Forum Index -> Finance -> Loans

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fleming
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Joined: 02 Apr 2007
Posts: 2



PostPosted: 05/20/08 - 07:29    Post subject: Reply with quote

I have been planning to start a business and I expect to get a pretty good profit from it. I will be mostly in trading and I seek to assure the best possible position. Now, I would like to know to what point can a company borrow money. If anyone could help that would be great.
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edgardo
Apprentice


Joined: 18 Mar 2005
Posts: 4



PostPosted: 06/18/08 - 23:49    Post subject: Reply with quote

Running any kind of business is never easy, and part of it is making a sound financial plan. You should earn profits, of course, but there are some times when it will not be that easy. You will probably have debts, and there are several types. For any of these, secured and unsecured, you should know that the best way to increase debt capacity is to increase your assets, raise credibility so that companies should be motivated to help you with it. Hope you find the info helpful. A company can thus only borrow money to a point at which it is trusted enough for something like that. Also, you should be the one to set a point after which you will not borrow money any further because you will not be able to pay. Hope you find the info helpful.
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